I first heard about it from Joe Kristan in his ROTH AND COMPANY TAX UPDATE BLOG posting “House Caves, AMT Patch Passes”, which reported-
“The House of Representatives caved this afternoon and passed a an "AMT Patch" for 2007 with no offsetting tax increases. The President is expected to sign the bill.
The House apparently passed the version of HR 3996 passed by the Senate December 6. The bill increases the AMT exemption to $66,250 for a joint return and $44,350 for single filers. The amounts were $62,550 and $42,500 for 2006. If Congress had failed to pass a "patch," the exemptions would have reverted to $45,000 for joint returns and $33,750 for singles, adding an estimated 19 million additional taxpayers to the AMT rolls.
As the patch only covers 2007, it kicks the problem into 2008 - an election year. More fun awaits.”
Treasury Secretary Henry M. Paulson, Jr. issued the following statement:
"I thank the House for taking action today on an AMT patch that will protect millions of Americans from an unexpected tax increase this year. With legislation now on the way to the President for his signature, the Internal Revenue Service can begin the remaining preparations for next year's filing season.
The IRS is doing all it can to have a fully successful filing season. However, it is likely that there will be some delays, including delays of some refunds. The Treasury Department and the Internal Revenue Service will do everything possible to keep American taxpayers informed throughout the course of the upcoming filing season."
As usual, TAX PROF Paul Caron provided full coverage in his post “House Passes One-Year AMT Patch Without Offsetting Tax Increases; President Bush Is Expected to Sign Bill”. The title just about says it all.
So the fix is in for 2007. Thank God! I can now finish the memo to go out with my annual January pre-tax season mailing to clients that covers the AMT mess and will tell them that, thanks to the irresponsibility of Congress, their 2007 refunds will be delayed by several weeks.
As Joe Kristan pointed out “more fun awaits” in 2008 when, or rather if, Congress finally attempts to put this dreaded tax to death.